Filed Pursuant to Rule 424(b)(3)
Registration Statement No. 333-22603
SUPPLEMENTED PROSPECTUS
SUPERIOR ENERGY SERVICES, INC.
COMMON STOCK
This prospectus relates to 45,000 shares of our common stock that may be
offered from time to time by the selling stockholders listed under the heading
"Selling Stockholders." We are registering the shares to provide the selling
stockholders with freely transferable securities, but this registration does
not necessarily mean that any of the shares will be offered or sold by the
selling stockholders.
The shares may be sold from time to time in ordinary brokerage
transactions on the Nasdaq National Market or such principal securities
exchange on which the common stock is then trading at prices prevailing at the
time of such sales. Brokers executing orders are expected to charge normal
commissions, and the proceeds to the selling stockholders will be net of
brokerage commissions. We will not receive any proceeds from the sale of the
shares. We will pay all expenses of registration incurred in connection with
this offering. All selling and other expenses incurred by the selling
stockholders will be paid by them.
Our common stock is traded on the Nasdaq National Market under the symbol
"SESI." On October 1, 1999, the last reported sale price of the Common Stock
on the Nasdaq National Market was $6.50 per share.
SEE "RISK FACTORS" BEGINNING ON PAGE 4 FOR INFORMATION THAT YOU SHOULD
CONSIDER BEFORE PURCHASING THE SHARES.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED ON THE
ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
The date of this supplemented prospectus is October 4, 1999.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other
information with the SEC. You can inspect and copy that information at the
public reference room of the SEC at 450 Fifth Street, NW, Washington, D.C.
20549. You may call the SEC at 1-800-SEC-0330 for more information about the
public reference room. The SEC also maintains an Internet site that contains
reports, proxy and information statements and other information regarding
registrants, like us, that file reports with the SEC electronically. The SEC's
Internet address is http://www.sec.gov.
We have filed a registration statement and related exhibits with the SEC to
register the common stock offered by this prospectus. The registration
statement contains additional information about us and our securities. You may
inspect the registration statement and exhibits without charge at the SEC's
public reference room, and you may obtain copies from the SEC at prescribed
rates.
The SEC allows us to "incorporate by reference" the information we file with
it, which means that we can disclose important information to you by referring
to documents on file with the SEC. The information incorporated by reference
is considered to be a part of this prospectus. Certain information that we
file later with the SEC will automatically update and supersede this
information.
We incorporate by reference the following documents that we have filed with
the SEC pursuant to the Securities Exchange Act of 1934:
* Our annual report on Form 10-KSB for the fiscal year ended December 31,
1998 (filed April 1, 1999), as amended by Form 10-KSB/A (filed April 29,
1999);
* Our quarterly reports on Form 10-Q for the fiscal quarters ended March
31, 1999 (filed May 17, 1999), as amended by Form 10-Q/A (filed June 18,
1999) and June 30, 1999 (filed August 16, 1999);
* Our current reports on Form 8-K filed with the SEC on January 7, 1999,
April 26, 1999, July 7, 1999, July 30, 1999 and September 9, 1999;
* Our definitive proxy statement dated June 18, 1999;
* The description of our common stock set forth in our registration
statement on Form 8-A/A filed October 29, 1997; and
* All documents filed by us with the SEC pursuant to Sections 13(a), 14
or 15(d) of the Securities Exchange Act after the date of this prospectus
and prior to the termination of this offering.
At your request, we will provide you with a free copy of any of these
filings (except for exhibits, unless the exhibits are specifically incorporated
by reference into the filing). You may request copies by writing or
telephoning us at:
Superior Energy Services, Inc.
1105 Peters Road
Harvey, Louisiana 70058
Attn: Investor Relations
(504) 362-4321
YOU SHOULD RELY ONLY ON INFORMATION INCORPORATED BY REFERENCE OR PROVIDED IN
THIS PROSPECTUS. WE HAVE NOT AUTHORIZED ANYONE ELSE TO PROVIDE YOU WITH
DIFFERENT INFORMATION.
NOTICE REGARDING FORWARD-LOOKING STATEMENT
Some of the statements in this prospectus and in some of the documents that
we incorporate by reference in this prospectus are forward-looking statements
about our expectations of what may happen in the future. Statements that are
not historical facts are forward-looking statements. These statements are
based on the beliefs and assumptions of our management and on information
currently available to us. Forward-looking statements can sometimes be
identified by our use of forward-looking words like "anticipate," "believe,"
"estimate," "expect," "intend," "may," "plan" and similar expressions.
Forward-looking statements are not guarantees of future performance. They
involve risks, uncertainties and assumptions. Our future results and
stockholder value may differ significantly from those expressed in or implied
by the forward-looking statements contained in this prospectus and in the
information incorporated in this prospectus. Many of the factors that will
determine these results and values are beyond our ability to control or
predict. We caution you that a number of important factors could cause actual
results to be very different from and worse than our expectations expressed in
or implied by any forward-looking statement. These factors include, but are
not limited to, those discussed in "Risk Factors" beginning on page 4.
Management believes these forward-looking statements are reasonable.
However, you should not place undue reliance on these forward-looking
statements, which are based only on our current expectations. Forward-looking
statements speak only as of the date they are made, and we undertake no
obligation to publicly update any of them in light of new information or future
events.
THE COMPANY
We provide a broad range of specialized oil field services and equipment
primarily to major and independent oil and gas companies engaged in the
exploration, production and development of oil and gas properties offshore in
the Gulf of Mexico and throughout the Gulf Coast region. These services and
equipment include the rental of specialized oil field equipment, electric and
mechanical wireline services, oil and gas well plug and abandonment services,
the rental of liftboats, coil tubing services, engineering services, the
manufacture, sale and rental of drilling instrumentation and the manufacture
and sale of oil spill containment equipment. Over the last several years, we
have significantly expanded our operations through both internal growth and
strategic acquisitions. This expansion has enabled us to broaden the range of
products and services that we offer to our customers and to expand our
operations geographically throughout the Gulf Coast region.
On July 15, 1999, we completed the acquisition by merger of Cardinal Holding
Corp. ("Cardinal"), thereby making Cardinal one of our wholly-owned
subsidiaries. Pursuant to the terms of the merger, the stockholders of
Cardinal received in the aggregate approximately 30,239,568 shares of our
common stock in exchange for Cardinal capital stock.
Superior is a Delaware corporation, and the mailing address of our executive
offices is 1105 Peters Road, Harvey, Louisiana 70058. Our telephone number is
(504) 362-4321.
RISK FACTORS
In evaluating a potential investment in the shares offered by this
prospectus, you should consider carefully the following risk factors as well as
the other information contained and incorporated by reference in this
prospectus.
INDUSTRY VOLATILITY -- WE ARE SUBJECT TO THE CYCLICAL INFLUENCES OF THE OIL AND
GAS INDUSTRY AND ARE HIGHLY SENSITIVE TO GENERAL ECONOMIC CONDITIONS.
Our business depends in large part on the conditions of the oil and gas
industry, and specifically on the willingness of our customers to make
expenditures. Purchases of the products and services we provide are, to a
substantial extent, deferrable in the event oil and gas companies reduce
capital expenditures. As a result, the cyclical nature of the oil and gas
industry and general economic conditions have a significant effect on the
demand for our oil field services and our revenues and profitability.
The demand for our products and services primarily depends on oil and gas
exploration, production and development activity in the Gulf of Mexico and
along the Gulf Coast. The level of oil field activity is affected in turn by
the willingness of oil and gas companies to make expenditures for the
exploration, production and development of oil and natural gas. The levels of
such capital expenditures are influenced by:
* oil and gas prices;
* the cost of exploring for, producing and delivering oil and gas;
* the sale and expiration dates of leases in the United States;
* the discovery rate of new oil and gas reserves;
* local and international political and economic conditions; and
* the ability of oil and gas companies to generate capital.
Although the production and development sectors of the oil and gas
industry are less immediately affected by changing prices, and, as a result,
less volatile than the exploration sector, producers generally react to
declining oil and gas prices by reducing expenditures. This has in the past,
and may in the future, adversely affected our business. We are unable to
predict future oil and gas prices or the level of oil and gas industry
activity. A prolonged low level of activity in the oil and gas industry will
adversely affect the demand for our products and services and our financial
condition and results of operations.
RAPID GROWTH -- OUR INABILITY TO MANAGE THE POTENTIAL DIFFICULTIES ASSOCIATED
WITH EXPANSION COULD ADVERSELY AFFECT OUR FINANCIAL CONDITION.
We have grown rapidly over the last several years through internal growth
and acquisitions of other companies. It will be important for our future
success to manage the rapid growth that we have experienced, and this will
demand increased responsibility for management personnel. The following
factors could present difficulties to us:
* the lack of sufficient executive-level personnel;
* the increased administrative burdens; and
* the increased logistical problems of large, expansive operations.
If we do not manage these potential difficulties successfully, they could
have a material adverse effect on our financial condition and results of
operations. The historical financial information incorporated by reference
into this prospectus is not necessarily indicative of the results that would
have been achieved had we been operated on a fully integrated basis or the
results that may be realized in the future.
ACQUISITION STRATEGY -- OUR INABILITY TO CONTROL THE INHERENT RISKS OF
ACQUIRING BUSINESSES COULD ADVERSELY AFFECT OUR OPERATIONS.
Acquisitions have been and may continue to be a key element of our
business strategy. We cannot assure you that we will be able to identify and
acquire acceptable acquisition candidates on terms favorable to us in the
future. We may be required to incur substantial indebtedness to finance future
acquisitions and also may issue equity securities in connection with such
acquisitions. Such additional debt service requirements may impose a
significant burden on our results of operations and financial condition. The
issuance of additional equity securities could result in significant dilution
to our stockholders. We cannot assure you that we will be able to successfully
consolidate the operations and assets of any acquired business with our own
business. In addition, our management may not be able to effectively manage
our increased size or operate a new line of business. Any inability on our
part to consolidate and manage an acquired business could have a material
adverse effect on our results of operations and financial condition.
WEATHER CONDITIONS -- SEASONALITY AND ADVERSE WEATHER CONDITIONS IN THE REGIONS
IN WHICH WE OPERATE MAY ADVERSELY AFFECT OUR OPERATIONS.
Our operations are directly affected by the weather conditions in the Gulf
of Mexico. Due to seasonal differences in weather patterns, we may operate
more days in the spring, summer and fall periods and less in the winter months.
The seasonality of oil and gas industry activity in the Gulf Coast region also
affects our operations and sales of equipment. Due to exposure to weather, we
generally experience higher drilling activity in the spring, summer and fall
months with the lowest activity in winter months. The rainy weather,
hurricanes and other storms prevalent in the Gulf of Mexico and along the Gulf
Coast throughout the year may also affect our operations. Accordingly, our
operating results may vary from quarter to quarter, depending on factors
outside of our control. As a result, full year results are not likely to be a
direct multiple of any particular quarter or combination of quarters.
CUSTOMERS -- WE DEPEND ON SIGNIFICANT CUSTOMERS.
We derive a significant amount of our revenue from a small number of major
and independent oil and gas companies. Our inability to continue to perform
services for a number of our large existing customers, if not offset by sales
to new or other existing customers, could have a material adverse effect on our
business and operations.
COMPETITION -- THE HIGH LEVEL OF COMPETITION IN OUR INDUSTRY MAY ADVERSELY
AFFECT OUR OPERATING RESULTS.
We compete in highly competitive areas of the oil field services industry.
The products and services of each of our principal industry segments are sold
in highly competitive markets, and our revenues and earnings may be affected by
the following factors:
* changes in competitive prices;
* fluctuations in the level of activity and major markets;
* general economic conditions; and
* governmental regulation.
We compete with the oil and gas industry's largest integrated oil field
services providers. We believe that the principal competitive factors in the
market areas that we serve are product and service quality and availability,
technical proficiency and price.
Our operations may be adversely affected if our current competitors or new
market entrants introduce new products or services with better features,
performance, prices or other characteristics than our products and services.
Competitive pressures or other factors also may result in significant price
competition that could have a material adverse effect on our results of
operations and financial condition. Furthermore, competition among oil field
service and equipment providers is also based on a provider's reputation for
safety and quality. Although we believe that our reputation for safety and
quality service is good, we cannot assure you that we will be able to maintain
our competitive position.
Competition in the industry also affects our charter operations. Charter
rates for liftboats depend on the supply of vessels. The addition of new
capacity to the offshore liftboat fleet in the Gulf of Mexico could increase
competition, which, in turn, could have a material adverse effect on our
financial condition and results of operations.
OPERATING HAZARDS -- THE DANGERS INHERENT IN OUR OPERATIONS AND THE POTENTIAL
LIMITS ON INSURANCE COVERAGE FOR CERTAIN RISKS COULD EXPOSE US TO POTENTIALLY
SIGNIFICANT LIABILITY COSTS.
Our operations involve the use of heavy equipment and exposure to inherent
risks, including blowouts, explosions and fire. If any of these events were to
occur, this could result in liability for personal injury and property damage,
pollution or other environmental hazards or loss of production. In addition,
certain of our employees who perform services on offshore platforms and vessels
are covered by provisions of the Jones Act, the Death on the High Seas Act and
general maritime law. These laws make the liability limits established by
state workers' compensation laws inapplicable to these employees and instead
permit them or their representatives to pursue actions against us for damages
for job-related injuries. In such actions, there is generally no limitation on
our potential liability.
If our equipment were to fail, this could result in property damage,
personal injury, environmental pollution and other resulting damage for which
we could be liable. Litigation may arise from a catastrophic occurrence at a
location where our equipment and services are used. This could result in large
claims for damages. The frequency and severity of such incidents affect our
operating costs, insurability and relationships with customers, employees and
regulators. Any increase in the frequency or severity of such incidents, or
the general level of compensation awards with respect to such incidents, could
affect our ability to obtain projects from oil and gas companies or insurance.
This could have a material adverse effect on us. We maintain what we believe
is prudent insurance protection. We cannot assure you that we will be able to
maintain adequate insurance in the future at rates we consider reasonable or
that our insurance coverage will be adequate to cover future claims that may
arise.
In addition, our liftboats are subject to operating risks such as
catastrophic marine disaster, adverse weather conditions, mechanical failure,
collisions, oil and hazardous substance spills and navigation errors. The
occurrence of any of these events may result in damage to or loss of our
vessels or other property and injury to personnel. Such occurrences may also
result in a significant increase in operating costs or liability to third
parties. We maintain insurance coverage against certain of these risks, which
management considers to be customary in the industry. There can be no
assurance, however, that our existing insurance coverage can be renewed at
commercially reasonable rates or that such coverage will be adequate to cover
future claims that may arise.
GOVERNMENT REGULATION -- THE NATURE OF OUR INDUSTRY SUBJECTS US TO COMPLIANCE
WITH REGULATORY AND ENVIRONMENTAL LAWS, WHICH MAY AFFECT OUR OPERATIONS.
Our business is significantly affected by state and federal laws and other
regulations relating to the oil and gas industry and by changes in such laws
and the level of enforcement of such laws. We are unable to predict the level
of enforcement of existing laws and regulations, how such laws and regulations
may be interpreted by enforcement agencies or court rulings, or whether
additional laws and regulations will be adopted. We are also unable to predict
the effect that any such events may have on us, our business, or our financial
condition.
Federal and state laws that require owners of non-producing wells to plug
the well and remove all exposed piping and rigging before the well is
permanently abandoned significantly affect the demand for our plug and
abandonment services. A decrease in the level of enforcement of such laws and
regulations in the future would adversely affect the demand for our services
and products. Numerous state and federal laws and regulations also affect the
level of purchasing activity of oil spill containment equipment and
consequently our business. A decrease in the level of enforcement of state and
federal laws and regulations in the future may adversely affect the demand for
our products. In addition, we depend on the demand for our services from the
oil and gas industry. Such demand is affected by changing taxes, price controls
and other laws and regulations relating to the oil and gas industry generally.
The adoption of laws and regulations curtailing exploration and development
drilling for oil and gas in our areas of operations for economic, environmental
or other policy reasons would adversely affect our operations by limiting
demand for our services.
We also have potential environmental liabilities with respect to our
offshore and onshore operations. Certain environmental laws provide for joint
and several liabilities for remediation of spills and releases of hazardous
substances. These environmental statutes may impose liability without regard
to negligence or fault. In addition, we may be subject to claims alleging
personal injury or property damage as a result of alleged exposure to hazardous
substances. We believe that our present operations substantially comply with
applicable federal and state pollution control and environmental protection
laws and regulations. We also believe that compliance with such laws has had
no material adverse effect on our operations to date. However, such
environmental laws are changed frequently. Sanctions for noncompliance may
include revocation of permits, corrective action orders, administrative or
civil penalties and criminal prosecution. We are unable to predict whether
environmental laws will in the future materially adversely affect our
operations and financial condition.
WORK FORCE -- THE SHORTAGE OF SKILLED WORKERS MAY IMPAIR OUR GROWTH POTENTIAL
AND PROFITABILITY.
Our ability to remain productive and profitable will depend substantially
on our ability to attract and retain skilled workers. Our ability to expand
our operations may be in part impacted by our ability to increase our labor
force. Although in the past we have downsized our work force in response to
industry conditions, we cannot assure you that at times of high demand we will
be able to recruit and train workers. The demand for skilled workers in the
Gulf Coast region is high and the supply is limited. A significant increase in
the wages paid by competing employers could result in a reduction in our
skilled labor force, increases in the wage rates paid by us, or both. If
either of these events occurred, our capacity and profitability could be
diminished and our growth potential could be impaired.
SELLING STOCKHOLDERS
The following table sets forth as of October 1, 1999 certain information
regarding the selling stockholders. Based on information provided to us by the
selling stockholders, we believe that the persons listed below have sole
investment and voting power with respect to their shares.
BENEFICIAL BENEFICIAL PERCENTAGE
OWNERSHIP OF COMMON OWNERSHIP OF OF
COMMON STOCK STOCK COMMON BENEFICIAL
PRIOR TO OFFERED STOCK OWNERSHIP
SELLING STOCKHOLDER OFFERING FOR SALE AFTER SALE AFTER OFFERING
Stephen Booke (1) 30,000 30,000 0 --
Gerald Amato (1) 15,000 15,000 0 --
___________
(1) Former consultant to the Company.
PLAN OF DISTRIBUTION
All of the common stock offered hereby is being sold by the selling
stockholders. We have been advised that the common stock will be offered by
the selling stockholders from time to time on the Nasdaq National Market, where
the common stock is listed, or elsewhere in privately negotiated transactions,
at fixed prices which may be changed, at market prices prevailing at the time
of offer and sale, at prices related to such prevailing market prices or at
negotiated prices. The selling stockholders may effect such transactions by
offering and selling the shares directly or to or through securities broker-
dealers, including Gaines, Berland Inc. and GKN Securities Corp., and such
broker-dealers may receive compensation in the form of discounts, concessions,
or commissions from the selling stockholders and/or the purchasers of the
shares for whom such broker-dealers may act as agent or to whom the selling
stockholders may sell as principal, or both (which compensation as to a
particular broker-dealer might be in excess of customary commissions). If a
selling stockholder notifies us that a material arrangement has been entered
into with a broker or dealer for the sale of shares, a prospectus supplement
will be filed, if required, pursuant to Rule 424(c) under the Securities Act,
disclosing (a) the name of each such broker-dealer, (b) the number of shares
involved, (c) the price at which shares were sold, (d) the commissions paid or
discounts or concessions allowed to such broker-dealer(s), where applicable,
and (e) other facts material to the transaction.
The selling stockholders and any broker-dealers who act in connection with
the sale of the shares hereunder may be deemed to be "underwriters" within the
meaning of Section 2(11) of the Securities Act of 1933, and any commissions
received by them and profit on any resale of the shares as principal might be
deemed to be underwriting discounts and commissions under the Securities Act of
1933.
We have advised the selling stockholders that they and any securities
broker-dealers or others who may be deemed to be statutory underwriters will be
subject to the prospectus delivery requirements under the Securities Act. We
have also advised the selling stockholders that in the event of a
"distribution" of the shares, the selling stockholders, any "affiliated
purchasers," and any broker-dealer or other person who participates in such
distribution may be subject to Regulation M under the Securities Exchange Act
of 1934 until his or its participation in that distribution is completed. A
"distribution" is defined in the rules under the Securities Exchange Act of
1934 as an offering of securities "that is distinguished from ordinary trading
transactions by the magnitude of the offering and the presence of special
selling efforts and selling methods." Regulation M makes it unlawful for any
person who is participating in a distribution to bid for or purchase stock of
the same class as is the subject of the distribution. We have also advised the
selling stockholders that Regulation M prohibits any "stabilizing bid" or
"stabilizing purchase" for the purposes of pegging, fixing or stabilizing the
price of the common stock in connection with this offering.
We have agreed to indemnify certain of the selling stockholders and
underwriters against certain liabilities, including liabilities under the
Securities Act of 1933.
LEGAL MATTERS
The validity of the issuance of the common stock offered hereby will be
passed upon for us by Jones, Walker, Waechter, Poitevent, Carrere & Denegre
L.L.P., New Orleans, Louisiana.
EXPERTS
The consolidated financial statements of Superior Energy Services, Inc. as
of December 31, 1997 and 1998, and for each of the years in the three-year
period ended December 31, 1998, are incorporated herein in reliance upon the
report of KPMG LLP, independent certified public accountants, and upon the
authority of such firm as experts in accounting and auditing.
The consolidated financial statements of Cardinal Holding Corp. as of
December 31, 1997 and 1998, and for each of the three years in the period ended
December 31, 1998, appearing in the Definitive Proxy Statement of Superior
Energy Services, Inc. dated June 18, 1999, and in the Current Report on Form 8-
K of Superior Energy Services, Inc. dated July 30, 1999, have been audited by
Ernst & Young LLP, independent auditors, as set forth in their report thereon
included therein and incorporated herein by reference. Such consolidated
financial statements are incorporated herein by reference in reliance upon such
report given on the authority of such firm as experts in accounting and
auditing.
Future audited financial statements of the Company and the reports thereon
of the Company's independent public accounts will also be incorporated by
reference in this prospectus in reliance upon the authority of those
accountants as experts in giving those reports to the extent set firm has
audited those financial statements and consented to the use of their reports
thereon.
Prospective investors may
rely only on the
information contained in
this prospectus. We
have not authorized
anyone to provide
prospective investors
with different or
additional information.
This prospectus is not an
offer to sell, nor is it 45,000 SHARES
seeking an offer to buy
these securities in any
jurisdiction where the SUPERIOR ENERGY
offer is not permitted. SERVICES, INC.
The information contained
in this prospectus is
correct only as of the
date of this prospectus,
regardless of the time of COMMON STOCK
the delivery of this
prospectus or any sale of
these securities.
____________________ ______________
SUPPLEMENTED
PROSPECTUS
______________
TABLE OF CONTENTS
PAGE
October 4, 1999
Where You Can Find More
Information 2
Notice Regarding Forward-
Looking Statements 3
The Company 3
Risk Factors 4
Selling Stockholders 8
Plan of Distribution 8
Legal Matters 9
Experts 9
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